By Medha Singh
(Reuters) -The blue-chip Dow Jones Industrial Average tumbled on Friday, on pace to confirm that it has been in a bear market after it fell 20% from its January record high.
The Dow would be the last of the three main indexes to gain the bear market status after the S&P 500 notched that grim milestone in June and the Nasdaq in March.
If the Dow closes below 29,439.72 points, it would confirm a bear market that began from Jan. 4, according to a widely used definition.
The renewed selling pressure in markets comes in a week that saw the U.S. Federal Reserve raise interest rates by three-quarters of a percentage point for a third straight time and a vow to keep it going until inflation is under control.
It has been a tumultuous year for Wall Street, plagued by worries about Russia’s invasion of Ukraine, an energy crisis in Europe and the end of easy money policy globally.
The S&P 500 has lost 23% this year and the Nasdaq has shed 31%.
The last time the three indexes pulled back so sharply was in 2020 during the heights of the pandemic selloff.
Heightened fears of a U.S. economic downturn next year and its impact on corporate profits has prompted brokerages to downgrade their year-end targets for the S&P 500.
At 2:11 p.m. ET, the Dow Jones Industrial Average was down 696.04 points, or 2.31%, at 29,380.64, the S&P 500 was down 92.47 points, or 2.46%, at 3,665.52, and the Nasdaq Composite was down 274.44 points, or 2.48%, at 10,792.37.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta, Shinjini Ganguli and Maju Samuel)